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Construction Loans in Lincoln
Lincoln sits at the edge of Placer County's development boom. New parcels open regularly, and custom builds dominate neighborhoods like Twelve Bridges.
Construction loans fund your build in stages as work completes. You draw funds at key milestones — foundation, framing, completion — instead of one lump sum.
Most Lincoln builders want single-close construction-to-permanent loans. You lock your rate at closing and convert to a standard mortgage when the house finishes.
Land availability in Lincoln makes construction loans more common here than in established Placer cities. Expect lenders to scrutinize builder experience and project timelines.
You need 20-25% down for most construction loans. That includes land equity if you already own the lot.
Credit requirements start at 680, but 720+ gets you better terms. Income verification follows standard mortgage rules — two years of tax returns for self-employed borrowers.
Lenders require detailed construction plans, a licensed contractor, and a fixed-price contract. No handshake deals or owner-builder arrangements for most programs.
Your debt-to-income ratio must support both construction interest and the permanent mortgage payment. Budget conservatively — builds run over timeline 60% of the time.
Regional banks dominate construction lending in Placer County. They know local builders and understand Lincoln's permit timelines.
National lenders offer construction-to-permanent programs but often lack flexibility on draw schedules. Regional options adapt faster when your framer runs two weeks late.
Hard money lenders fill gaps for buyers using unknown builders or unconventional designs. Expect 10-12% rates and two-year balloons.
Access to 200+ wholesale lenders means we can match your builder's track record to lender requirements. First-time builders need different programs than established crews.
Lincoln buyers underestimate carrying costs during construction. You pay interest on draws plus rent or your existing mortgage for 6-12 months.
Choose builders who've completed five-plus projects in Placer County. Lenders reject contracts from crews with no local references, even if their work looks solid.
Rate locks on construction-to-permanent loans typically last 12 months. If your build drags past that, you relock at current rates — potentially costing thousands.
Get your construction loan and lot purchase financed separately unless you're buying from a builder who owns the land. Combining transactions adds 30-45 days to closing.
Bridge loans cover land purchase while you finalize construction plans. You convert to a construction loan once permits clear and contracts sign.
Conventional loans refinance your construction loan after completion. Two-close programs cost more in fees but let you rate-shop after the build finishes.
Jumbo construction loans kick in above $766,550 for Placer County. You need 25-30% down and reserves covering six months of payments.
Hard money makes sense for tear-downs or major renovations where traditional construction lenders won't touch the project. Plan to refinance within 24 months.
Lincoln permit timelines run 8-12 weeks for custom homes. Factor this into your construction loan timeline — most lenders won't fund until permits issue.
Water availability affects construction financing in western Lincoln. Lenders require proof of water rights or district allocation before approving rural builds.
Twelve Bridges and Bridlewood Canyon developments require architectural review before construction starts. Add 4-6 weeks to your timeline for HOA approval.
Summer heat slows Lincoln construction schedules. Concrete crews start at 5 AM and quit by noon June through August — your nine-month build estimate becomes twelve.
Most lenders require 20-25% down. If you own the land free and clear, that equity can count toward your down payment requirement.
Expect 45-60 days from application to closing. You need finalized plans, contractor licenses, and permits in hand before most lenders will approve.
Few lenders approve owner-builder construction loans. You need a licensed contractor with a Placer County track record for most programs.
You cover overages out of pocket. Construction loans fund only the approved contract amount — change orders require cash reserves.
Rates match conventional loans at conversion. During construction, you pay interest only on drawn funds, typically 0.5-1% above the permanent rate.
Yes, but lenders require county approval for residential use. Ag preservation easements or Williamson Act contracts can disqualify the property.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.